Himachal Pradesh is one of the fastest-growing states in India. Being a sub-Himalayan state, Himachal Pradesh has a varied climate that changes with altitude. Known as the ‘Land of Gods’, it is famous for its topographic diversity and pristine natural beauty.
At current prices, Himachal Pradesh’s gross state domestic product (GSDP) is estimated to be Rs. 2.55 trillion (US$ 30.07 billion) in FY26. The state’s GSDP (in Rs.) increased at a CAGR of 8.36% between FY16 and FY26.
Under the State Budget FY26:
- Rs. 1,492 crore (US$ 175.5 million) has been allocated for capital outlay on roads and bridges.
- Rs. 684 crore (US$ 80.5 million) has been designated for the rural water supply program, while Rs. 311 crore (US$ 36.6 million) has been allocated for the urban water supply program.
- Rs. 951 crore (US$ 111.9 million) has been allocated towards the Samagra Shiksha Abhiyan and Rs. 133 crore (US$ 15.6 million) has been allocated for PM-POSHAN.
- Rs. 807 crore (US$ 94.9 million) is estimated to be spent on medical education, training, and research and Rs. 399 crore (US$ 46.9 million) has been allocated for the National Rural Health Mission.
- Rs. 63 crore (US$ 7.4 million) has been allocated for extension services and farmers training and Rs. 33 crore (US$ 3.9 million) has been allocated for the National Mission on Natural Farming.
Ministry of Pharmaceuticals inaugurated three new centers of the Central Institute of Petrochemicals Engineering & Technology (CIPET). These centers have been established in the states of Himachal Pradesh, Jharkhand, and Madhya Pradesh. Himachal Pradesh has emerged as a hub of drug manufacturing units and meets 35% of the demand for pharma products in Asia.
In October 2022, Prime Minister Mr. Narendra Modi launched the Pradhan Mantri Gram Sadak Yojana (PMGSY)-III for the upgradation of 3,125 km of rural roads in Himachal Pradesh, with funds worth Rs. 420 crore (US$ 51 million).
Himachal Pradesh will have the world’s longest and highest tunnel by 2025, which will connect Zanskar Valley in Ladakh to Lahaul in Himachal Pradesh and will be 4.25 km in length.
Total exports from Himachal Pradesh stood at Rs. 19,028 crore (US$ 2,210.0 million) in FY25 (until February 2025).
The key items exported from Himachal Pradesh include drug formulations and engineering goods, cotton yarn, manmade yarn, fabrics and Madeups.
In FY25 (until February 2025), exports of drug formulations and biologicals from the state stood at Rs. 13,175 crore (US$ 1.56 billion).
As of March 2025, Himachal Pradesh had a total installed power generation capacity of 4,826.16 MW, comprising 2,146.96 MW under private utilities, 1,193.20 MW (state utilities) and 1,486.00 MW (central utilities).
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the cumulative FDI inflows in Himachal Pradesh were valued at Rs. 2,788 crore (US$ 328.34 million) between October 2019-December 2024.
According to the Telecom Regulatory Authority of India (TRAI), Himachal Pradesh had 8.87 million wireless connections and 2,01,160 wireline subscribers, as of December 2024.
In August 2022, power giant NHPC signed a deal with the Himachal Pradesh government for the construction of a 500 MW Dugar Hydroelectric Project in Chamba district.
In May 2022, the Himachal Pradesh government announced plans to allot 27 hydro power projects in the state's Chamba, Kangra, Lahaul-Spiti, Kullu, Shimla, and Kinnaur districts, with a combined tentative generation capacity of 722.4 MW. Proposals from 'eligible bidders' have been invited for the implementation of these projects in the private sector on a Build, Own, Operate, and Transfer (BOOT) basis.
Himachal Pradesh has made significant achievements in the field of industrialisation in the past few years. The rich natural resources of the state are favourably suited for investments in major sectors such as procurement of agricultural produce, hydroelectric power, cement, and tourism. Himachal Pradesh has made significant achievements in the field of industrialisation in the past few years.
- In March 2022, the Himachal Pradesh Industries department signed 15 MoUs with investors amounting to Rs. 810 crore (US$ 104.62 million) for the upcoming Medical Device Park (MDP) at Nalagarh in Solan district.
The four agro-climatic conditions in the state support cultivation of multiple crops, vegetables and fruits around the year. The state government is focusing on increasing productivity levels besides diversification towards high-value crops. In 2021-22, the total production of horticulture crops in the state was estimated at 3,423.29 thousand metric tonnes and area under production was 280.75 thousand hectares. In 2021-22, the total production of vegetables and fruits was estimated at 2,048.35 thousand metric tonnes and 1,072.42 thousand metric tonnes, respectively.
In July 2022, a two-day capacity building workshop on the Prakritik Kheti Khushal Kisan Yojana (PK3Y) was conducted at Dr. YS Parmar University of Horticulture and Forestry, Nauni, in Solan.
To provide infrastructure support to entrepreneurs, the Himachal Pradesh Government has developed 41 industrial areas and 15 industrial estates. Solan, Sirmour, Kangra and Una districts lead in terms of investments attracted.
In April 2022, the Ministry of Civil Aviation and the Himachal Pradesh government signed an MoU (Memorandum of Understanding) for the development of a Greenfield Airport in Nagchala, located in the district of Mandi in Himachal Pradesh. The project is estimated to cost around Rs. 900 crore (US$ 116.24 million), excluding the cost of land.
The tourism sector of Himachal Pradesh contributes 7% to the state GDP. Domestic tourist inflow in the state reached 15.07 million in 2022, while foreign tourist arrivals reached 29,333. As of December 2019, there were 3,679 registered hotels in the state.
In February 2022, DeepTech startup TechEagle partnered with the Government of Himachal Pradesh to offer drone delivery solutions for delivering medicine and vaccines to hard-to-access areas in the state, especially during winter.
